Recovering Unclaimed Dividends on Tata Consumer Products Limited Shares from IEPF
Tata Consumer Products Limited (TCPL), previously known as Tata Global Beverages Limited, is a leading Fast-Moving Consumer Goods (FMCG) company offering a range of products including tea, coffee, water, salt, pulses, and spices. TCPL has a large retail shareholder base who may have accumulated unclaimed dividends over the years.
As per regulations, dividends remaining unpaid or unclaimed for seven consecutive years have to be transferred by the company to the Investor Education and Protection Fund (IEPF). The IEPF is a statutory body established by the Ministry of Corporate Affairs to administer such unclaimed dividends.
Shareholders of Tata Consumer Products Limited can recover the unclaimed dividend amounts from IEPF through a laid down claim process. This article provides a step-by-step guide for resident shareholders on how to file their refund application and recover unpaid dividend amounts on TCPL shares:
When Dividends are Transferred as ‘Unclaimed’ to the IEPF
As per Section 124(5) of the Companies Act 2013, companies have to transfer any dividend amount that has remained unpaid or unclaimed for a period of seven consecutive years or more from the date of its transfer to the Unpaid Dividend Account, to the IEPF.
The due date for the transfer is within 30 days from the end of the seventh year or as per timelines notified by the Ministry of Corporate Affairs. For Tata Consumer Products, the unclaimed dividend details get updated in its Annual Reports on the ‘Unclaimed Suspense Account’ showing the financial year-end when it becomes liable for transfer to the IEPF.
Before transferring, TCPL sends reminders to concerned shareholders periodically intimating them to claim their dividends. Notices are also published in newspapers. Hence, resident shareholders of TCPL must proactively keep track of corporate announcements, Annual Reports and make timely dividend claims based on declared payment dates to avoid unclaimed transfer.
How to Verify Unclaimed Dividends on Tata Consumer Products Shares
Shareholders staying in their housing society under the management of a professional Maintenance or Facility Management firm can take assistance from their Managers to check if they have any unclaimed dividends payable on their TCPL shareholdings.
The Managers can help shareholders verify unclaimed dividend records by:
– Checking TCPL Annual Reports on the company website to identify relevant financial years when unpaid dividends may have accrued on the shareholder’s folio.
– Writing to the TCPL Registrar and Transfer Agent informing shareholder name, folio number and requesting for statement of unclaimed dividend amounts pertaining to the years identified.
– TCPL RTA provides a statement showing financial year-wise breakup of unclaimed dividend amounts outstanding if any against the shareholder’s name/folio.
– The statement aids in the application for claiming refund from IEPF.
Documents Required for Filing IEPF Refund Claim
To file the online application for claiming unpaid dividends on Tata Consumer Products shares from the IEPF, shareholders need to have scanned copies of:
1. Consolidated Statement of Unclaimed Dividend furnished by TCPL Registrar
2. Indemnity Bond signed by claimant shareholder
3. Advance Receipt with claimant details and amount
4. Self-attested copy of PAN Card
5. Self-attested copy of Aadhar Card (for Indians) or Passport (for NRIs)
6. Cancelled personalised cheque showing claimant’s bank details
7. Client Master List certified by Depository Participant (in case of demat holding)
8. Copy of Share Certificate or TCPL letter intimating transfer of shares to IEPF (for physical holding)
9. Proof of entitlement (like Will, Succession Certificate etc.) if applied by claimant other than original shareholder
The Maintenance Managers can help shareholders with printing, signing and scanning of the necessary supporting documents.
Steps to File Refund Claim on the IEPF e-Filing Portal
Follow these step-wise instructions to submit the online application for unclaimed dividend refund from IEPF:
Step 1: Register on the IEPF website – www.iepf.gov.in to generate user id and password
Step 2: Login with the credentials, click on e-Forms, select ‘Form IEPF-5’ and fill required information
Step 3: Enter TCPL details like name, registered office address, Corporate Identity Number
Step 4: Fill claimant bank account and PAN details along with particulars of unclaimed amount(s) being claimed
Step 5: Upload scanned copies of all supporting documents as per guidelines
Step 6: Pay applicable claim fee online via net banking, credit card, UPI etc. integrated with the form
Step 7: Verify details and submit the duly completed Form IEPF-5 on the MCA portal
Step 8: Note down acknowledgement number for tracking claim status
The authorized Managers can assist shareholders, especially senior citizens, with the end-to-end online application formalities.
Tracking Claim Status and Receiving Payment from IEPF
The IEPF Authority evaluates all e-claims received on the MCA portal. Shareholders can track their claim status by:
– Tracking acknowledgement number on the ‘View Filed Claim History’ section under ‘My Account’
– Status gets updated to ‘Closed’ once claim is approved and payment processed
– Calling helpdesk or emailing to check application status
– Receiving SMS/email alerts on registered contact particulars regarding any deficiencies for rectification
On successful verification, the unpaid dividend amount is released by the IEPF Authority in favor of the claimant shareholder directly into the provided bank account via electronic transfer.
The resident shareholders should notify their respective Managers on receiving IEPF claim amounts for record updating. The Manager also follows up on pending claims by communicating with the IEPF officials via email or phone calls.
Understanding Unclaimed Dividends Transferred to IEPF by Tata Consumer Products
Tata Consumer Products Ltd (TCPL) is required by law to transfer any dividends that remain unpaid or unclaimed by shareholders for 7 consecutive years to the Investor Education and Protection Fund (IEPF). This is mandated under Section 124 of the Companies Act, 2013.
It is important for shareholders, especially resident shareholders of housing societies, to understand the nuances of these IEPF transfer provisions and claim process in order to safeguard their rightful dividend entitlements.
When Do Dividends Become Due for Transfer as ‘Unclaimed’ to IEPF?
Dividends are declared by the Company Board at its discretion from time to time out of distributable profits. The dividend record date and payment date is fixed by the Company for the purpose of identifying eligible shareholders entitled to receive the dividend payout.
Shareholders need to claim their dividends from the Company on or before the payment date to avoid it being classified as ‘unpaid’ or ‘unclaimed’. If any dividends remain uncashed or unclaimed continuously for 7 consecutive years from the date of its transfer to the Company’s Unpaid Dividend Account, then TCPL is mandated to transfer those dividend amounts to the IEPF within 30 days from completion of the 7-year period.
For instance, if the record date for a dividend was 15th February 2016 and payment date was 3rd March 2016, shareholders should have claimed their dividend on or before 3rd March 2016. If any amount remained ‘unclaimed’ in the Company books, it would become due for transfer to the IEPF on 4th April 2023 i.e. after expiry of 7 years from original payment date.
When Does TCPL Transfer Unclaimed Dividends to IEPF?
TCPL transfers the unclaimed dividend amounts to IEPF annually by October 31 which falls within the permitted 30 days window from the due date.
The company publishes notices in newspapers intimating shareholders who have not claimed their dividends to apply on or before September 30 of that year to avoid IEPF transfer. It also individually informs concerned shareholders periodically via letters to submit their claims.
The Unclaimed Dividends get updated in a separate ‘Unclaimed Suspense Account’ in the Company’s Annual Report. Resident shareholders staying in housing societies can request their Managers to check this account annually to identify dividends liable for IEPF transfer.
TCPL provides the concerned shareholder/folio details along with the financial year-wise breakup of unclaimed dividend amounts to the IEPF Authority at the time of remitting the total unclaimed sum each year.
When Can Shareholders Claim Back Unclaimed Dividends from IEPF?
Once TCPL transfers any unclaimed dividends to the IEPF, the original shareholders cannot claim those dividends directly from the Company anymore.
They have to necessarily file a separate online application with the IEPF Authority on the MCA portal as per the prescribed Form IEPF-5 process.
Only after verification of identity and entitlements by the IEPF office, will the shareholder be refunded the unclaimed dividend amount(s) directly into their bank account. There is no deadline or limit for filing the refund claims with IEPF.
Why Must Unclaimed Dividends be Transferred to IEPF?
Transferring unclaimed dividends to a centralized IEPF helps protect shareholder rights. It prevents misuse of funds lying idle in Company books with no claimants. The amounts are utilized by the IEPF Authority only towards specific investor education, awareness and protection activities benefiting the public.
It also prompts timely dividend claims by shareholders instead of permitting funds to accumulate endlessly without monitoring liabilities. Transfers after 7 years also facilitate company accounting and closure of unpaid liabilities from their books.
When applied with proper documentation through authorized Managers, genuine claims by original shareholders are approved without restrictions by the IEPF Authority for refunds. Hence, resident shareholders of TCPL staying in housing societies should take assistance from Managers to proactively keep track and claim their dividend entitlements within due timelines.
Understanding Difference between Unclaimed Equity Shares and Dividends due for IEPF Transfer
While we have understood unclaimed dividends, shareholders should be aware that in addition to dividends, equity shares held in physical form are also liable to be transferred to the IEPF Authority if they remain unclaimed for 7 consecutive years or more.
The key differences between transfer of unclaimed dividends versus shares to the IEPF are:
- Parameters Unclaimed Dividends Unclaimed Equity Shares
- Reason for Transfer Any dividends remaining unpaid or unclaimed continuously for 7 years from date of transfer to Company’s Unpaid Dividend Account Shares held in physical form with no claimant or encashment for 7 years or more
- Transferred by Tata Consumer Products Limited (Company declaring dividends) Tata Consumer Products Limited (Company which has issued shares)
- When Transferred Within 30 days from completion of 7 years period After completion of 7 years period based on company intimation
- Transferred to Investor Education and Protection Fund (IEPF) Authority Investor Education and Protection Fund (IEPF) Authority
- Refund Claim Procedure File Form IEPF-5 online on MCA portal along with documents File Form IEPF-5 online on MCA portal along with documents
Thus shareholders need to be vigilant in tracking and claiming their dividend as well as share entitlements within prescribed timelines to avoid permanent transfer to the IEPF.
How Do Shareholders Claim Refund from IEPF for Unclaimed Dividends?
Shareholders can claim refund of unpaid dividends on their TCPL shares transferred to the IEPF by submitting an online application in the prescribed Form IEPF-5 along with requisite documents directly on the MCA portal. Follow these steps:
Step 1. Obtain Statement of Unclaimed Dividends
Write to the company RTA or check Annual Reports to identify dividends unpaid for 7 years
Obtain statement from RTA providing financial year-wise breakup of unclaimed dividend amounts against your name/folio
Step 2. Prepare Refund Application
Fill Form IEPF-5 providing PAN, Aadhar, bank details and financial year-wise unclaimed dividend details
Attach scanned copies of statement, indemnity bond, advance receipt, identity/address proof and bank verification in Form’s upload section
Step 3. Online Submission
Register on MCA portal to access Form IEPF-5 and fill in details
Attach supporting document copies
Make e-payment of refund fee via netbanking, UPI, card etc integrated with form
Submit the form after verification by authorised Manager
Step 4. Track Status and Receive Payment
Note down acknowledgement number generated after IEPF-5 submission
Track status online using number or via emails till showing as ‘closed’ after approval
Receive refund directly into bank account from IEPF via electronic transfer
Thus by diligently compiling documents and submitting Form IEPF-5 under guidance of authorized Managers, shareholders can recover their unclaimed dividend amounts on TCPL shares.
Mistakes to Avoid when Filing Claim for Unclaimed Dividends from IEPF
While seeking refunds of unclaimed dividends from the IEPF, shareholders should avoid these common mistakes which may lead to rejection or delays:
– Filing incomplete Form IEPF-5 without attaching mandatory documents like indemnity bonds, identity proof, bank verification etc as required under IEPF rules
– Providing incorrect personal details like PAN, Aadhaar or bank account numbers which don’t match attached documents
– Forgetting to make payment of refund fees mentioned in Challan with the form before final submission on MCA portal
– Not retaining acknowledgement number generated after form submission on the portal which is vital for tracking status
– Letting 7-year period lapse without claiming dividends on time from the Company before amounts are transferred to IEPF
– Trying to directly claim unclaimed dividends from the company after amounts are already transferred to IEPF instead of filing a separate refund application with the IEPF Authority
– Not submitting the online claim form IEPF-5 or initiating the process assuming old unpaid dividends cannot be claimed back whereas there is no deadline for refund claims to IEPF
By entrusting management of dividend claims to professional Managers and authorizing them for online submission of forms, shareholders can avoid rejections and efficiently recover their rightful dividend amounts on TCPL shares transferred to IEPF over the years.
Responsibilities of Companies in Communicating Unclaimed Dividends to Shareholders
As per IEPF rules, companies like TCPL have the following responsibilities:
– Give adequate intimation to concerned shareholders at least 3 months before due date of transferring unclaimed dividends to IEPF
– Publish notices in newspapers providing list of shareholders with unclaimed dividends atleast 2 months before due date requesting claims
– Display details of unclaimed dividends on websites and upload information on MCA portal before transferring amounts to IEPF
– Submit details of shareholders whose unclaimed dividend is being transferred along with particulars of shares held and dividend amounts to the IEPF Authority
Thus TCPL is obligated to make all efforts to inform shareholders and provide them opportunities to claim dividends before transferring unclaimed amounts to IEPF after the 7-year period.
Despite Company initiatives, the onus lies with each shareholder to proactively monitor and claim their eligible dividends within the permitted timeline. Seeking assistance from Managers can help overcome any communication gaps and safeguard shareholder dividend rights diligently.
Common Reasons for Dividends Lying Unclaimed with Companies
There could be various reasons why shareholders may have failed to claim their eligible dividends from TCPL within the stipulated timeline before amounts get transferred to the IEPF:
– Change in registered address without updating records – Preventing dividend warrants or notices from reaching shareholder on time
– Non-linking of bank mandate with shareholder folio – Leading to dividend payments either rejected or delayed
– Shares held in joint names but dividend warrant issued in single name due to lack of joint holder endorsement
– Errors in bank account details or IFSC codes provided – Resulting in electronic transfers of dividends being rejected
– Dividend warrants returned undelivered due to absence of claimants and lack of communication by shareholders of their latest address
– Shares under dispute or litigation preventing payouts due to court orders
– Physical dividend warrants being lost in transit or misplaced by shareholders untraced
– Lack of ownership records in case of deceased shareholders where successors have not obtained transmission of shares in their names
– General lack of awareness about dividend announcements or claim process
By proactively reviewing registered details, updating communications and tracking corporate actions through Managers, shareholders can mitigate risks of dividends going unclaimed.
Assistance by Professional Managers in Unclaimed Dividends Tracking & Recovery
Professional Maintenance or Facility Management firms can provide much needed assistance to resident shareholders in effectively tracking and claiming their rightful but unclaimed dividends from companies like TCPL, especially amounts transferred to the IEPF.
Key areas where MUDS can help shareholders:
– Periodically reviewing Annual Reports to check for unclaimed dividend amounts updated in ‘Unpaid Dividend Accounts’
– Intimating periods when dividends may fall due based on past declaration dates
– Obtaining statement of unclaimed dividends from RTA on shareholder’s behalf
– Assisting in timely submission of KYC documents or linking valid bank details to folio
– Guiding on rectification of errors in registered particulars like bank accounts, PAN, IFSC codes etc
– Helping track legal disputes stopping payouts and resolving irregularities
– Assisting senior citizens or shareholders living away from hometowns in claiming dividends where direct coordination with company RTAs may be difficult
– Supporting with paperwork & online submission of Form IEPF-5 for claiming unclaimed dividend amounts from the IEPF
– Consistent follow ups & liaising with IEPF Authority using authorization till receipt of claim by shareholder
Thus, by authorizing Managers, resident shareholders can ensure diligent tracking and timely actions for recovery of their legitimate dividend payments.
Conclusion: Monitor Unclaimed Dividends to Avoid Loss of Shareholder Rights
In conclusion, resident shareholders staying in housing societies under management should be aware of the regulatory need for companies like TCPL to transfer long pending unclaimed dividends to the IEPF. They should review communication from companies and proactively claim eligible dividend payments within prescribed timelines either directly from the company or subsequently through refund claims to the IEPF Authority using Form IEPF-5.
Authorizing Managers by providing access to portfolio details can help mitigate risks of losing rightful dividend entitlements permanently to the IEPF due to lack of shareholder monitoring. By providing centralized assistance, Managers empower shareholders to uphold their legitimate rights and safeguard earnings on share investments diligently.
The IEPF Authority periodically updates rules and procedures for facilitating refunds in investor interest. By entrusting and authorizing professional Managers who are adept at navigating the continuously evolving application formalities, resident shareholders can rest assured of recovering their rightful dividend payments on Tata Consumer Products shares seamlessly from IEPF. Staying informed and being vigilant about corporate actions is key to preventing accruals of unclaimed amounts.